Defensive offer, or have house prices become so expensive?

2022-02-06 22:50:28

And when I look at what is left behind... with 300-400k in the bank, very few would neglect a house as much as it is left

and I know many decent people throughout their entire lives, who renovate/have renovations done around 65 years old and then don't want the "mess" anymore, whether in a house or rented, and at 85-95 years old it looks like ...., it is like that

2022-02-07 13:13:43

The problem with the massively increased property values often arises when there is an inheritance. In reality, the heir often does not care whether the house they inherit is worth 300k or 600k. A house is a house if you want to live in it. BUT when inheritance tax becomes due, the complaining starts or often enough the actual problem arises that there is not enough additional liquid assets inherited to pay the inheritance tax. Then a forced sale is imminent.

Often seen in the Munich Alpine foothills, for example. There, the locals are even displaced when property is present in the family... :(

2022-02-07 16:57:12

The problem with massively increased property values often arises when an inheritance case occurs. For the heir, it often does not really matter whether the house they inherit is worth 300k or 600k. A house is a house if you want to live in it. BUT when inheritance tax becomes due, the complaining usually starts or, often enough, the actual problem, that not enough additional liquid assets are inherited to pay the inheritance tax. Then a forced sale is impending.

Often seen in the Munich Alpine foothills, for example. There, the locals are even displaced when property exists within the family... :(

Those who have no liquid assets can also mortgage the inherited real estate jackpot. These amounts are significantly lower than, for example, having to pay out a co-heir.

2022-02-07 17:04:49

I also see it that way, that the inheritance is the smaller problem. The exemption amounts are quite large and people who are now passing on houses also had more than one child. If you use it yourself, no inheritance tax is due anyway. It is more critical when the dear siblings want to have their share of 500k paid out.

2022-02-08 07:28:58

Owner-occupied family property is additionally favored in inheritance tax.

If it is not used and is to be sold, the tax is not a problem.
Because "only" the sale price minus the inheritance allowances has to be taxed. Liquidity is then available through the sale.

2022-02-08 09:16:02

Yes, you are right. The actual problem is often not the tax, but rather paying out the siblings if there are any. In the end, the conclusion remains the same: private households rarely benefit from the massively increased real estate prices. For example, if a property is "left over" in the family or when moving out of ownership and into renting. Or through the mentioned leveraging. In some way, the increase has to be realized, but at least in my filter bubble, that happens rather rarely... How is it with you?

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Defensive offer, or have house prices become so expensive?

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